Comparison of Canadian Pacific Railway and Canadian National Railway
Table of Contents
1. Introduction
• Background – History and Overview of Industry
• History and Overview of Canadian Pacific Railway
• History and Overview of Canadian National Railway
2. GAAP methods validation 3. Financial Analysis
• Canadian Pacific Railway
• Canadian National Railway
4. Comparison of Canadian Pacific Railway and Canadian National Railway through Ratio Analysis
• Gross margin
• Net income margin,
• Return on assets
• Return on equity
• P/E Ratio
5. Recommendation
6. Appendices
• Income statements
• Balance sheet
• Cash flow Statement
1. Introduction
A. Railway Industry in North America
Rail industry is profitable and growing industry. In North America, five companies are dominant and each one has its own advantage.
1. Canadian National Railway- It covers continent north-south, east-west.
2. Canadian Pacific Rail-Bulk commodities (coal, grains, and fertilizers) compromises approximately 44% of revenue
3. CSX- Provides service to east part of the Mississippi River and it is one of the biggest exporter of coal to Southeast Asia, India, and Germany.
4. Union Pacific- This company provides service to west of the Mississippi River and import exports at U.S. West Coast ports.
5. Norfolk Southern- The primary strength of this company is Coal business considered it exports coal from U.S. East Coast ports.
Among these all big players, Canadian National Railway and Canadian Pacific Rail are considered as competitors. The financial analysis of the same is performed to assess the profitability from investor’s view-point. Among these all big players, Canadian National Railway and Canadian Pacific Rail were considered as competitors in several areas, mainly in Central Canada before the automobile age and before the development of dense highway network in Ontario and Quebec
Among these all big players, Canadian National Railway and Canadian Pacific Rail were considered as competitors in several areas, mainly in
1. Introduction
• Background – History and Overview of Industry
• History and Overview of Canadian Pacific Railway
• History and Overview of Canadian National Railway
2. GAAP methods validation 3. Financial Analysis
• Canadian Pacific Railway
• Canadian National Railway
4. Comparison of Canadian Pacific Railway and Canadian National Railway through Ratio Analysis
• Gross margin
• Net income margin,
• Return on assets
• Return on equity
• P/E Ratio
5. Recommendation
6. Appendices
• Income statements
• Balance sheet
• Cash flow Statement
1. Introduction
A. Railway Industry in North America
Rail industry is profitable and growing industry. In North America, five companies are dominant and each one has its own advantage.
1. Canadian National Railway- It covers continent north-south, east-west.
2. Canadian Pacific Rail-Bulk commodities (coal, grains, and fertilizers) compromises approximately 44% of revenue
3. CSX- Provides service to east part of the Mississippi River and it is one of the biggest exporter of coal to Southeast Asia, India, and Germany.
4. Union Pacific- This company provides service to west of the Mississippi River and import exports at U.S. West Coast ports.
5. Norfolk Southern- The primary strength of this company is Coal business considered it exports coal from U.S. East Coast ports.
Among these all big players, Canadian National Railway and Canadian Pacific Rail are considered as competitors. The financial analysis of the same is performed to assess the profitability from investor’s view-point. Among these all big players, Canadian National Railway and Canadian Pacific Rail were considered as competitors in several areas, mainly in Central Canada before the automobile age and before the development of dense highway network in Ontario and Quebec
Among these all big players, Canadian National Railway and Canadian Pacific Rail were considered as competitors in several areas, mainly in